Arizona Small Business Defaults Stable in August

Press Release updated: Oct 23, 2017 11:23 CDT

​PayNet, the premier provider of credit ratings on small businesses, announces that in August 2017 the percentage of Arizona’s small businesses defaulting on existing loans has remained unchanged. Of the 18 major industries, defaults improved in 16 and worsened in 2 in the state compared to the prior month.

Following similar behavior to July, Arizona’s PayNet Small Business Default Index (SBDFI) at 1.84% was comparable to the national SBDFI level.  Over the last year, the national SBDFI increased 8 basis points, whereas Arizona’s SBDFI declined 3 basis points.

The industries with the worst default rates in Arizona were Transportation and Warehousing (4.73%); Mining, Quarrying, and Oil and Gas Extraction (2.96%); and Admin & Support and Waste Management & Remediation Services (2.79%). Nationally, Transportation and Warehousing had a default rate of 4.51%, with a difference of +0.48% compared to the prior year, while Arizona had a variance of +0.95%.

Coming in at 92.6, the PayNet Small Business Lending Index (SBLI) for Arizona increased 0.3% from the previous month’s state level, but was 6.7% lower than this month’s national SBLI level (99.3). The Index is basically unchanged from a year ago.

“This implies low risk taking and normalized credit quality of small businesses,” states the president of PayNet, William Phelan.  

Source: www.paynet.com

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About the Author: Carrie Brunner

Carrie Brunner grew up in a small town in northern New Brunswick. She studied chemistry in college, graduated, and married her husband one month later. They were then blessed with two baby boys within the first four years of marriage. Having babies gave their family a desire to return to the old paths – to nourish their family with traditional, homegrown foods; rid their home of toxic chemicals and petroleum products; and give their boys a chance to know a simple, sustainable way of life. They are currently building a homestead from scratch on two little acres in central Texas. There’s a lot to be done to become somewhat self-sufficient, but they are debt-free and get to spend their days living this simple, good life together with their five young children. Carrie writes mostly on provincial stories.
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